For 1.2 billion dollars: Lonza takes over the Roche factory in the USA

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Under the agreement with Roche, Lonza will pay $1.2 billion in cash for the facility. Lonza also wants to invest about $500 million more in expansion, it announced Wednesday.

Vacaville is one of the largest biopharmaceutical manufacturing facilities in the world, with a total capacity of approximately 330,000 liters. With the acquisition, Lonza will significantly expand its manufacturing capacity and presence in the United States.

Roche said in a separate statement that the pharmaceutical company decided to sell the Vacaville facility as part of its “long-term network strategy” to be able to offer a broader portfolio of new drug methods.

Lonza said products currently produced at the facility for Roche are produced by Lonza but will be phased out in the medium term in favor of quantities promised to other customers. As part of the agreement, approximately 750 Genentech employees will be offered employment at the Vacaville facility.

It was stated that the transaction is expected to be completed in the second half of 2024, subject to customary closing conditions. Following completion of the transaction, the new facility will be integrated into the Biological Division and the existing network of mammal production facilities at Visp in Valais, Slough/UK, Singapore, Portsmouth/USA and Porriño/ES.

Lonza expects this transaction to have a positive impact on sales growth. Accordingly, medium-term forecasts for the years 2024-2028 will be updated or adjusted slightly upwards. Annual sales growth in local currencies, which was previously 11 to 13 percent, is now expected to be between 12 and 15 percent in the said period.

Core EBITDA margin and return on invested capital (ROIC) targets remain unchanged, while medium-term forecasts for net debt to core EBITDA and investment path are also unchanged. (SDA)

Source :Blick